BlockFuel Energy announced the acquisition of producing oil and gas assets and related infrastructure in Payne County, Oklahoma, expanding its operated footprint and supporting future development initiatives. The company is currently 51% owned by Innovation Beverage Group, which has announced a proposed merger with BlockFuel.
The acquisition adds interests in six operated wells, including four producing horizontal oil wells, one drilled but uncompleted well, and one saltwater disposal well. The transaction also includes production equipment, gathering systems, and utility infrastructure that the company believes will support both existing hydrocarbon operations and future energy projects.
Prior to the acquisition, BlockFuel had assembled a portfolio of 55 producing oil and gas wells and nine saltwater disposal wells spanning approximately 55 square miles across Payne, Pawnee, and Noble Counties in Oklahoma. With the addition of the new assets, the company’s operated well count increases to 61.
BlockFuel plans to launch an eight-well vertical drilling program during the second half of 2026. The wells are expected to be drilled as step-out locations adjacent to existing production, allowing the company to utilize its existing gathering systems, utility connections, tank batteries, and saltwater disposal network.
Management said leveraging existing infrastructure should reduce development costs and accelerate the timeline to first production compared with greenfield projects.
The acquired assets include production wells, an additional saltwater disposal well, and field infrastructure such as separators, tank batteries, beam pumps, transformers, gathering systems, utility systems, and related equipment. The package also includes rights associated with future renewable energy and utility infrastructure opportunities.
BlockFuel said the acquisition expands its production base, increases control over contiguous infrastructure, adds disposal capacity, lowers operating costs, and provides opportunities for production optimization and enhanced recovery projects.
The company intends to continue pursuing additional acquisitions that complement its existing infrastructure platform across Oklahoma and other strategic regions.
KEY QUOTES:
“We believe the combination of producing wells, gathering systems, SWD infrastructure, and utility assets creates meaningful opportunities to increase operational efficiency and grow production while lowering development and operating costs. The replacement cost of each Saltwater Disposal Well is approximately $1million plus the cost of the gathering system and power grid.”
“Our eight vertical well development program is designed to capitalize on the extensive infrastructure platform we have assembled. By drilling step-out wells adjacent to existing production and utilizing current infrastructure, we expect to materially reduce capital costs and improve project economics while supporting continued production growth.”
Daniel Lanskey, President And CEO, BlockFuel Energy
